Special task force to probe Saradha chit fund fraud

New Delhi, April 25 (IANS) The corporate affairs ministry Thursday said it would to set up a special task force to investigate the chit fund scam related to Kolkata-based firm Saradha group.

"The Ministry of Corporate Affairs has taken note of the misuse by certain chit fund companies who have raised huge sums of money from the public at large," an official release said.

It said although the state government was the appropriate authority to deal with these matters under the Chit Funds Act 1982, the central government has decided to probe the issue keeping in view the larger public interest involved.

"In view of the larger public interest involved in these cases, and concerns regarding misuse/laundering by such companies of the ill gotten wealth, and the possibility that the promoters of these companies may strip these companies, it has been decided by the Ministry of Corporate Affairs to set up a Special Task Force," the ministry said.

The special task force will work under the Serious Fraud Investigations Office (SFIO).

"Accordingly, all investigations into such companies are being entrusted to SFIO with immediate effect," it said.

"The task force will also co-ordinate with other law enforcement agencies and regulators wherever required," it added.

The market regulator, Securities and Exchange Board of India (SEBI) is also probing the fund-raising activities of the Saradha Group.